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transport of military supplies, partly for the conveyance of goods and passengers. The main section of the tramway now serves to connect Bioritsu and Kagi, those points between which the railway is still in course of construction, a distance of 82 miles; but it was originally laid between Tainan and Shinchiku, a distance of 140 miles, and had several branches, so that there was improved communication between the chief towns even before the railway reached them. Tramway stations exist at all important points on the route, and are only a few miles apart. Transport charges on a fixed scale average no higher than a penny per mile. The miniature passenger-cars have seats for four persons, with an awning, and are propelled by coolies. The speed obtained, considering that the service is maintained entirely by human labour, is very satisfactory.

The dredging only of Kelung Harbour has been taken into account in the item of £200,000 included in the proposed expenditure under the loan sanctioned in 1898, but it is intended later on to complete the works by constructing a breakwater, piers, embankment, docks, and warehouses, and generally to improve the town of Kelung, the projected outlay upon which will form the subject of another application to the Diet. When the dredging works now in progress are completed, the port of Kelung will have 36 feet of water in the inner and outer steamship harbours, and not less than 9 feet in the junk harbour (inner lagoon). The inner steamship harbour will have a landing-pier 1,000 feet long, accommodating several coastwise or foreign-going vessels at a time. The outer steamship harbour will have a quay with two piers, the total water-line being 3,000 feet, able to berth seven or eight ocean-going steamers at once, the depth being ample for the largest craft afloat. Ships at anchor in the outer harbour will have the protection, moreover, of a breakwater over 4,000 feet long, which is to cost 8,000,000 yen, and will occupy six or seven years in construction. Large workshops have been built, a spacious goods station is under construction, with roofed cargo sheds, and rails will traverse piers and quay, so that merchandise may be handled direct from railway-car to ship by the hydraulic and steam cranes. The entire work as planned will be completed by 1904, but the piers and quay may be extended later on if trade demands it.

On the west side of the harbour extensive docks, slips, and piers are being provided for the use of the army and navy. The Government has to reclaim 250 acres of land in order to carry out its programme, but when finished Kelung will possess a perfectly safe and commodious harbour; and as Kelung is designed to be the chief port of Formosa, its harbour